TypeFixed Fee perDeliverableFixed Fee PerMatterSituations in which matterrecurs in a defined andpredictable way so that theclient and firm can agreeon a reasonable fixed fee tohandle that matter, barring anyunforeseen developments.

Capped Fee
Flat Fee per Period

Affixes an “all in” price for
a distinct piece of work,
encompassing all of the law
firm’s ancillary preparation
and effort.

;Pay X for a law firm to
draft and argue a summary
judgment motion;

;Pay Y per deposition taken;

;In the transactions
context, pay Z to produce
an initial draft of a license
agreement.

Situations in which certain
component pieces of work
are distinct and measurable
such that client and law firm
can agree upon a workable fee
schedule, even if the number of
“units” of work may vary going
forward.

Sets a fixed price for all legal
work relating to a particular
matter.

;Pay Y to handle the
defense of a single-plaintiff
employment litigation up
to trial, with an additional
fixed amount to try the
case.

Commonly used to set a
ceiling on what the client
will pay the law firm in a
particular matter, or for a
particular piece of work.

Resembles a fixed fee, but
with certain drawbacks
(discussed in the “Assessing”
section below.)

;Legal fees for this matter,
in this calendar year, not to
exceed X;

;Fees for drafting and
arguing this appeal not to
exceed Y;

;Fees to handle this
transaction not to exceed
Z.

Situations in which the client
is most comfortable with the
hourly rate billing model and
favors greater predictability (by
capping fees on the high end)
as opposed to lowering fees
(by sharing with the law firm
a portion of savings generated
under fixed fees).

Typically covers distinct
categories of services during
the course of a specified
period.

;Monthly flat fee to cover
advice and counsel
requests on regulatory
issues of a certain type;

Situations in which distinct
pieces of work need to be
performed on a recurring basis,
and the client wants to create
an economic incentive for the
law firm to staff and perform
the work more efficiently
(i.e. reducing its own cost to
increase its margin).